SHANGHAI Heli General Aviation Co, the city's first helicopter leasing firm, has started operations as it seeks to tap the huge potential in the general aviation market.

The firm is a joint venture between Shanghai Sikorsky Aircraft Co and Suzhou ULC Automobile Seats Co. With a registered capital of 20 million yuan (US$2.59 million), Shanghai Heli is 85 percent owned by Shanghai Sikorsky, a joint venture between US helicopter maker, Sikorsky Aircraft Corp, and Shanghai Little Eagle Science and Technology Co. The privately- owned Suzhou company takes the remaining stake.

"The helicopter leasing market in China is not so big now, but it is a very promising market in the future," said Cai Yan, an official with Shanghai Sikorsky, but she did not give further details.

The helicopter leasing firm is based at the city's only helicopter base at Shanghai Pudong Waigaoqiao Gaodong. Shanghai Heli now owns two helicopters - a S-300C which can seat three people, and a S-333, which is a four-seater.

There are about 50 to 60 helicopter leasing firms across China, but Shanghai restricted the issue of the license in the past because of its crowded sky, industry officials said.